Senate Finance Committee Ranking Member Charles Grassley today announced that he has secured a commitment from the IRS to suspend for one month the collection of the AMT (including interest and penalties) arising out of employees’ exercise of incentive stock options. The suspension gives Congress time to enact legislation that would ease these burdens on affected taxpayers.

Comments

Congress seems to be tripping over itself to provide relief to people who held onto ISO stock that then decreased in value. The trouble is that the relief is not limited to those cases. Drafting legislation that accurately targets relief will be quite difficult.